The California Association of Realtors (C.A.R.) has outlined significant legislative changes for 2025 that will impact real estate professionals and their clients. Covering areas such as accessory dwelling units (ADUs), buyer agreements, landlord-tenant regulations, and more, these updates reflect the evolving legal landscape in California. Unless otherwise stated, the new laws take effect on January 1, 2025.
ADU Amnesty
The amnesty law has been expanded to include unpermitted Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) constructed before 2020. This law requires cities and counties to create a clear and accessible permitting process, making it easier for property owners to bring their units into compliance and ensure they meet safety and legal standards.
Balcony Inspections
The inspection deadline for buildings with three or more multifamily dwelling units, excluding condominiums, has been extended to January 1, 2026. Additionally, the list of authorized inspectors for wooden balconies in multiunit buildings within CDIs now includes civil engineers.
Buyer Representation Agreements
Buyer Representation Agreements must be signed prior to the buyer making an offer on a property. These agreements cannot exceed a term of three months and must clearly outline that the compensation for the realtor is subject to negotiation.
Common Interest Developments
In Common Interest Developments (CIDs), the association is responsible for repairing utilities that originate in common areas, even if they extend into individual units unless the declaration specifies otherwise.
Disclosures
Sellers must provide new disclosures if they receive domestic water storage tank assistance or are aware of state or local requirements for replacing gas-powered appliances.
Fair Housing
The Unruh Act has been expanded to include race-associated traits, such as hairstyles. Additionally, the concept of “intersectionality” is now recognized, allowing discrimination claims to involve multiple protected characteristics.
Landlord-Tenant
The law requires landlords to change locks upon a tenant’s request due to abuse and prohibits application fees unless a unit is available under specific conditions. Tenants can have positive rental payment histories reported to credit agencies, and landlords must provide photos documenting security deposit deductions. Charging fees for termination notices and check payments is banned, and response periods for unlawful detainer cases are extended to ten business days. Some tenant rights are also extended to small commercial tenants.
Mobile Homes
The unlawful detainer masking rules, which protect tenants from certain legal actions being used against them in eviction cases, are now extended to mobile home park tenancies. This means that mobile home park residents are now afforded the same legal protections regarding eviction records as other tenants, ensuring that eviction proceedings do not unfairly impact their future housing opportunities.
Probate
The law now allows for easier asset distribution outside of probate by increasing the small estate exception limit to $750,000 for a decedent’s primary residence. This means that if the value of the deceased person’s primary residence is $750,000 or less, their heirs may be able to transfer the property without going through the lengthy and costly probate process.
Swimming Pool Safety
Recent updates to swimming pool safety regulations for single-family properties now require home inspectors to specifically report on the presence and condition of drowning prevention features.
Navigating the Changes
These legislative updates represent a significant shift in California’s real estate laws, emphasizing tenant protections, fair housing, and safety regulations. Realtors must familiarize themselves with these changes to provide accurate guidance to clients and maintain compliance with state law.
Conclusion
The 2025 legal updates signal California’s ongoing commitment to refining its real estate landscape, balancing innovation, safety, and fairness. For realtors, staying informed and proactive is essential to navigating these changes effectively and continuing to deliver excellent service to clients.